Are you up to speed on the changes to the National Living and National Minimum Wage coming in April 2024?

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The Government has recently accepted the recommendations of the Low Pay Commission and announced the rates of the National Living Wage (NLW) and National Minimum Wage (NMW) which will come into force from April 2024.

Bryan Sanderson, chair of the Low Pay Commission, said their recommendation to increase the NLW to £11.44 demonstrates an effort to navigate “a high degree of political and economic uncertainty“.

Currently, the NLW applies to those 23 and above. However, from April 2024 the NLW will expand to include 21- and 22-year-olds.

The NLW will increase by 9.8% from the current £10.42 per hour to £11.44 per hour. For a full-time employee working 37.5 hours per week this equates to a minimum annual salary of £22,308.

Younger employees and apprentices will also see significant pay increases from April 2024, with 18–20-year-olds hourly pay set to increase to a minimum of £8.10 per hour. Additionally, 16–17-year-olds and apprentices will see their pay increase to a minimum of £6.40 per hour which is a huge 21.2% increase from the current minimum in this bracket.

These substantial increases demonstrate an acknowledgement of the tough economic climate, and the challenges employees are facing during the ‘cost of living crisis’. The Recruitment & Employment Confederation’s Deputy Chief Executive, Kate Shoesmith, stated that this rise “rightly takes into account both cost of living increases and the slow path of pay growth over the last decade or so. It will be a challenge for some employers to adapt“.

However, employers should pause to consider the impact that this may have on their business finances and pay structures. An increase to the lowest paid roles can create pressure on the whole pay structure of an organisation, decreasing the differential between an entry level role and first line management, for example. In some instances, a significant salary increase could result in an entry level role overtaking the first line manager.

We would recommend that all organisations undertake a pay audit to scope the impact that these changes will have on their current pay structure at the earliest opportunity to prepare for April 2024.

At Narrow Quay HR, we are experienced in completing pay audits, pay reviews and if necessary, organisational restructures. For an informal discussion on how we could support you ensure your practices remain in line with the statutory requirements and suit your business strategy, please contact Kathryn Chidzey-Jones in our team on 07881 092524.

Important holiday pay update

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There are important upcoming changes in the holiday entitlement landscape, specifically affecting part-year and irregular hours workers.

This will be relevant to you if you have workers who work varying hours or part of the year only. This is particularly common in the hospitality and education sector.

The Government has recently consulted on proposals to reform holiday entitlements for part-year workers. This was in response to the Supreme Court’s ruling in the Brazel case of last year.

Here’s a brief overview of the upcoming changes:

  • Accrual Method: We will see the introduction of an accrual method to calculate holiday entitlement for part-year, irregular hours workers, and agency workers at 12.07% of hours worked in a pay period.
  • Calculation Timing: Holiday entitlement should now be calculated at the end of each pay period rather than monthly, as initially proposed.
  • Legal Definition: To provide clarity for employers, there will be a legal definition of ‘irregular hours and part-year workers’.
  • Rolled-Up Holiday Pay: A new option will be introduced, allowing the payment of rolled-up holiday pay at the statutory rate of 12.07% – only for irregular hours workers, part-year workers, and specific agency workers. This means that, for those workers, holiday pay can be integrated into a worker’s standard pay at the time of work, rather than during their holiday period.

It’s important to note that the draft regulations are scheduled to come into effect on January 1, 2024. The changes will impact part-year and irregular hours workers’ holiday entitlements for leave years beginning on or after April 1, 2024. Until then, part-year and irregular hours workers remain entitled to 5.6 weeks’ unreduced statutory holiday.

What should employers do for now?

Employers should take this opportunity to review how they deal with holiday pay for these groups of workers and consider any amendments required to their processes to give effect to these changes when they come into force.

We will provide timely updates on any additional developments relating to this issue and can also work with you to discuss how you may be affected, liaising with our colleagues in VWV if required.

For more information, please contact Caitlin Anniss in our team on 07909 683 938.

Psychological safety: Insights from Squid Game: The Challenge

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Squid Game: The Challenge allows us to reflect on human nature and think about what employers can do to create workplaces that unite and flourish, rather than divide.

Is Squid Game: The Challenge a psychologically safe environment? Definitely not. It’s probably about as far away as its possible to be. That’s sort of the point. Peril lurks at every turn and one false move can mean elimination from the game.

456 people compete to win $4.56 million, the largest prize in game show history, by taking part in children’s games. Competitors from different backgrounds form allegiances, try to get themselves on the strongest teams and decide whether to give others an advantage or eliminate them from the game. It’s a fascinating and exposing insight into what happens when you put a group of people who don’t know each other together to navigate the tensions between teamwork and individual reward. Not that dissimilar from a workplace, right?

What is psychological safety?

Psychological safety is the bedrock of a healthy, inclusive, and harmonious workplace culture. Harvard Business School Professor, Amy Edmondson, used the concept to describe a ‘climate where employees feel safe to take interpersonal risks, voice their opinions, and express their thoughts without fear of negative consequences’.

Psychological safety is about creating an environment where authenticity is valued, mistakes are viewed as opportunities for growth, and diverse perspectives are not just welcomed, but actively sought. In Squid Game: The Challenge, mistakes are not viewed as opportunities for growth, mistakes lead to blame, often leaving the individual visibly crushed.

What are the benefits of a psychologically safe working environment?

Enhanced Employee Engagement and Retention

Psychological safety enhances employee engagement, increases investment in discretionary employee efforts, and further results in an increased sense of ownership, commitment and belonging to an organisation.

Greater Diversity in the Workplace

Organisations that prioritise psychological safety tend to have greater diversity amongst their workforce, as employees feel safe, included, and comfortable to share their ideas and celebrate their differences.

Open and Effective Communication

Psychological safety encourages open and honest communication. When employees feel safe to express themselves, communication barriers break down, leading to greater transparency and effective collaboration.

Enhanced Innovation, Creativity and Problem-Solving

A psychologically safe working environment creates an open and safe space for employees to share their ideas, be creative and innovative, and find sustainable and supported solutions.

Effective Conflict Resolution

In psychologically safe working environments, employees feel confident in discussing and resolving conflicts constructively and in a conciliatory manner. This contributes to a reduction in adversarial workplace disputes which can have a negative impact on the workplace and employee wellbeing.

Positive Employee Wellbeing

Psychological safety is linked to mental health and overall well-being. When employees feel safe and supported, stress and anxiety levels decrease, contributing to a positive and healthy workplace atmosphere.

What measures can organisations implement to promote psychological safety?

Conduct a workplace audit to assess psychological safety

Organisations can conduct a workplace audit to assess psychological safety. This would include a review of employee policies and practices, as well as facilitated discussions with groups in the organisation.

Training and Development

Invest in leadership development programs and training workshops to raise awareness about the importance of psychological safety within teams and the workplace. Training should also focus on the necessary tools and communication strategies to create a supportive and psychologically safe working environment

Measuring and Monitoring

Implement tools and indicators to regularly monitor psychological safety in the workplace. This will assist in gauging evolving needs and adjustments that need to take place.

If your organisation would like assistance and guidance on how to create a psychologically safe working environment and/or to empower your leadership team with the necessary tools for maintaining a psychologically safe working environment, please contact Megan Britz at mbritz@narrowquayhr.co.uk.

Accidental managers and the risk they pose to your business

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We’re not talking here about managers who get their arm stuck in a revolving door or electrocute themselves trying to fix the photocopier, although that could make for an interesting article. We’re talking about those managers who get promoted to a managerial role without any training on how to manage staff. And, according to some recent research by the Chartered Management Institute (CMI), that accounts for a whopping 82% of new managers.

The research entitled ‘Taking Responsibility – Why UK PLC Needs Better Managers – The Result of a Nationwide Study into the State of UK Management‘ was conducted in conjunction with YouGov. It obtained responses from 2,524 employees with management experience and 2,018 employees with no management experience in the UK.

So, what is the risk to your business of not equipping your managers with the skills they need to line manage staff?

The CMI report comments, ‘A total of 50% of those workers who do not rate their manager plan to leave in the next year. And 31% of managers and 28% of workers have left a job because of a negative relationship with their manager.’ In a challenging recruitment market, it’s more important than ever for businesses to make sure they are retaining their good employees.

Perhaps even more concerning than employees preparing to jump ship due to poor management, the CMI also found that an ineffective manager can be a reason why an employee does not report suspected wrongdoing or poor behaviour. The CMI report comments, ‘Of the one in five managers (17%) who said they had wanted to raise concerns but didn’t, 41% feared they would not get enough support from their superiors.’

The business case

And if your Board needed more persuading that line manager training is a worthwhile investment, the CMI has published a number of statistics:

  • Trained managers are more comfortable with managing change initiatives (87%, compared to 77% of non-trained managers) and also with employing emerging technology to improve efficiency (66% vs50%)
  • Great managers also engender loyalty in their people. Almost all (72%) of those workers who rated their own manager as effective felt stated they felt valued and respected. This figure dropped to just 15 per cent where the manager was rated as ineffective.
  • Staff with good managers were generally more satisfied with their job (74%), felt motivated (77%), and agreed their organisation had a good culture (67%).
  • A higher proportion of trained managers ask their team members for feedback (79%, compared to 69% without formal training)

What can organisations do next?

The CMI has a plan for a ‘better managed Britain’ and it is fairly simple:

  • Do some digging – what training has taken place? Where are the gaps?
  • Commit to raising skills – this will usually be by way of skills based training and other development tools, such as coaching and mentoring.

In our experience of delivering manager training, the areas that managers often appreciate guidance on are the interplay between informal and formal processes, how and when to record and escalate matters and how to have difficult conversations.

Finally, it is always worth encouraging decision makers to reflect on the question ‘Can you remember a time you had an ineffective manager and how that felt as compared to when you were managed well?’ Reflecting on our own experiences, many of us may be able to recall impact that a poor or ineffective manager had on us both inside and outside of work.

Managing staff can be difficult and challenging at times, but it is a teachable and learnable skill. Practical steps you might want to take could include:

  • Line manager training for new managers covering all aspects of people management and providing guidance on how to use informal and formal processes
  • Refresher sessions for existing managers to hone their skills and provide updates on new management practices
  • Mentoring opportunities, buddying up newly promoted managers with more experienced managers
  • Policy guides, to support managers in the practical application of policies
  • Feedback mechanisms for line managers in place to celebrate those who are developing their skills and to direct enable focused support to be provided for to those who need further development

So, if your organisation is not currently teaching line managers these key skills, perhaps now is a good time to review your current practices and consider some changes. Improving line manager skillsets and supporting their development will ensure more effective people management practices, leading to better engagement and retention of all staff.

For further advice or guidance on this topic or to discuss our line manager training provision, please contact Sarah Martin in our team on 07799 136 091.

What can employers do to mitigate the risk of maternity discrimination?

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Recent tribunal cases have highlighted that employers must remain vigilant in keeping up to date with their policies and practices to continue to promote equality for women throughout their employment.

Understanding maternity discrimination

Maternity discrimination occurs when a pregnant woman or new mother faces unfavourable treatment in the workplace due to her pregnancy or maternity leave. This can manifest in various forms, including:

  • Unfair dismissal or redundancy during or after pregnancy
  • Being denied opportunities for promotion
  • Having an unsupportive work environment
  • Being treated differently to their colleagues whilst on maternity leave

Recent tribunal cases of maternity discrimination serve as critical reminders of the challenges that pregnant employees and new mothers continue to face. Employers can learn from these examples to create more equitable work environments. Here are a few notable cases:

Failure to adequately consult – In this case the tribunal held that redundancy consultation carried out with a director while she was on maternity leave was a sham. It noted that there was a stark difference between how she was treated and how colleagues who were working were treated, stating that the only explanation for this difference was that she was on maternity leave.

Refusing flexible working – The tribunal concluded that the employer’s refusal of a flexible working request following their employee’s return from maternity leave amounted to indirect discrimination. The tribunal ruled in favour of the employee, emphasising the need for proper consideration of, and investigation into, the viability of flexible working requests.

Failure to provide company updates – In this case the tribunal held that an office worker, who was excluded from a company-wide ‘free day off’, then not sent job adverts whilst on maternity leave was discriminated against.

What lessons can employers take from this?

Whilst situations can vary from company to company, there are simple steps an employer can take to avoid falling foul of employment legislation:

  • Ensure that promotions and demotions are based on merit rather than a woman’s maternity status
  • Proactively support employees in managing their work-life balance, especially during and after maternity leave
  • Create and communicate comprehensive maternity and paternity policies that outline the latest employees’ rights, including protection from discrimination and harassment
  • Consider offering training for all employees, managers, and HR staff to increase awareness of maternity discrimination issues and the legal consequences
  • Consider implementing flexible working options, such as remote working or adjusted hours, to accommodate employees during and after maternity leave
  • Foster a culture of inclusivity that values diversity and acknowledges the unique challenges that pregnant employees and new mothers face.

As well as avoiding tribunals, taking steps to ensure company practices are inclusive, will positively impact employee engagement and retention – not simply for those staff affected but for staff who want to work for an ’employer of choice’.

If you would like to discuss this topic further or would like further guidance on how to improve your policies or mitigate potential risk, please contact Helen Couchman in our team on 07799 901669.

Men’s health in the workplace: nurturing a culture of well-being

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In recent years, there has been a growing awareness of men’s health issues, supported by annual initiatives such as Movember and Men’s Health week. This year sees the Movember movement celebrating its 23rd year – a phenomenal achievement – and whilst these campaigns provide a spotlight at key points in the year, we consider what can employers do year-round to ensure men’s health issues are prioritised.

Why do we need to be concerned about men’s health?

The statistics on men’s health are concerning. According to the Men’s Health Forum:

  • Four out of five suicides are male
  • One man in five dies before the age of 65
  • 75% of premature deaths from heart disease are male
  • 67% of men are overweight or obese
  • Middle-aged men are twice as likely to have diabetes as women

The reasons behind these statistics are complex and multi-layered. We do know men tend to go to their doctor less frequently than women – this could be due in part to the stigma associated with discussing health concerns, especially mental health. This can lead to delayed diagnosis and treatment, further exacerbating the health issues. For others it may be that they are not fully aware of the importance of regular health check-ups or the early signs of health problems. Whilst gender stereotyping has progressed in recent years, for some there may still be an outdated view of what masculinity is – being expected to ‘man up’ and ‘keep it together’ – asking for help may be perceived as a weakness.

What can employers do?

  • Increase awareness: If part of the issue is that men simply aren’t aware of possible health risks, run campaigns that seek to educate about men’s health issues, including the importance of early detection and mental health support.
  • Encourage open conversations: Create a workplace culture that encourages open discussions about health and well-being and support individuals and line managers in feeling confident to have these discussions.
  • Support public Initiatives: publicise campaigns such as Movember and Men’s Health week and encourage employees to participate.
  • Mental health support: signpost employees to any confidential counselling services, helplines, and resources for employees struggling with mental health concern whether that’s through a company funded Employee Assistance Programme or via external organisations.
  • Maintain a focus on health and wellbeing: promote regular health check-ups, encourage employees to stay physically active and achieve a healthy work-life balance.
  • Champion men’s health: consider having a men’s health champion that employees can talk to and who can signpost them to support.
  • Lead by example: Encourage senior management to set an example by taking care of their own health and well-being, demonstrating that it’s not a sign of weakness to seek support when needed.

The health and well-being of all employees should be of paramount importance to employers. Appreciating that different groups of employees will require different strategies for supporting their well-being is equally critical. Initiatives such as the Movember campaign play a vital role in raising awareness, but employers also need to take an active role in supporting men’s health. By promoting awareness, fostering a culture of open communication and providing resources, companies can contribute to improving the health and overall quality of life for their male workforce. In doing so, we can help change the narrative surrounding men’s health and ensure that men feel comfortable seeking the support they need. Addressing these concerns is not just an ethical imperative but also a strategic one, as healthier and happier employees are more productive and engaged in the workplace.

For specialist HR support with any of these issues, please contact Sue Meehan Boyes in our team on 07384 468797.

The Menopause at work – World Menopause Day 2023

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World Menopause Day is observed annually on October 18th. For HR professionals, it’s an opportunity to reflect on the work being done within their own organisations on this issue and a chance to foster inclusive workplaces by addressing the unique issues that menopausal employees encounter.

The menopause, a natural phase in a woman’s life typically occurring between the ages of 45 and 55, brings about physical and emotional changes. In the workplace, these changes can manifest in various ways, including hot flashes, sleep disturbances, mood swings, and cognitive changes. These symptoms can significantly impact an employee’s performance and well-being.

So, how can we best create a supportive workplace?

  • Awareness: The first step for HR professionals is to raise awareness among employees and managers about menopause. Offering workshops or information sessions can help eliminate misconceptions and reduce stigma.
  • Flexible working: Consider implementing flexible working arrangements, allowing employees to adapt their schedules to better manage their symptoms. Remote work options, adjusted hours, or reduced workload during difficult periods can make a significant difference.
  • Review your policies: Ensure that your organisation’s policies, including sickness absence and performance management, are menopause-friendly. Adapt them if needed and consider introducing a menopause policy.
  • Training for managers: Provide training to managers on how to support employees going through the menopause. Encourage open and empathetic conversations, making it easier for employees to discuss their needs.

There are many benefits of a menopause friendly workplace. Providing a supportive work environment is of course best practice. It also has benefits for your organisation, including improving retention rates, reducing absence rates, and improving the engagement of your employees.

World Menopause Day 2023 is a timely reminder for HR professionals to prioritise the well-being the issue of the menopause in the workplace. By taking proactive steps to raise awareness, adapt policies, and provide support, you can create a workplace that empowers women to navigate this natural life transition with confidence and dignity.

For further advice or guidance, or for training for line managers around the menopause and the workplace, please contact Caitlin Anniss in our team on 07909 683 938.

Russell Brand – what would you do if he was your employee?

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Imagine a situation where an employee of yours is accused of serious sexual offences outside of work that doesn’t involve any work colleagues.

At first glance, a default approach might be to say that what happens outside of work is a private matter for the employee and so does not and should not affect their employment. But, it’s often more complicated than that.

In this sort of case, an employer may want to be mindful of three possible scenarios:

  1. Whether the employee’s behaviour outside of work affects, or may affect the organisation’s reputation.
  2. Whether the employee’s alleged behaviour impacts on whether their colleagues would want to work with them.
  3. If your organisation is subject to the Keeping Children Safe in Education (KCSIE) rules, then a third question might be about transferrable risk. While the considerations about this are beyond the scope of this piece, it is definitely still worth seeking advice about.

It’s worth remembering also, that the employment law test to arrive at a decision is on the balance of probabilities. This is a lower bar than the criminal test which is beyond reasonable doubt. This means that employers can and should arrive at their own conclusions and not have to feel that they need to wait for, or follow, the judgments and decisions in any criminal case. A word of warning here though: if the police are involved, you need to ensure that you don’t take any steps that the police might claim prejudices their own investigations, so it’s important to open a dialogue with them at an early stage.

This is a very complex area, which has become tricker with the arrival of social media and people commenting on a difficult situation. We recommend you should avoid any knee jerk reactions and promptly form a team who will deal with the process. If the incident has become widely known then let employees know who will be dealing with it and, for instance, designate a point of contact who will deal with media queries.

The standard advice regarding a disciplinary process also applies of ensuring a separation of roles, so someone should be given the task to investigate the matter, someone else (ideally more senior) should be given the task of hearing any disciplinary, should that be necessary; and then a third person (more senior still) should be identified as an appeal hearing manager.

It goes without saying that it is also sensible to take advice. Your organisation may well be facing this challenge for the first time whereas we have got experience in dealing with these matters.

For further advice and guidance on this matter or other HR related concerns, please contact Simon Martin in our team on 07384 813 076.

Navigating the surge in workplace conflict and strategies for effective resolution

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The modern workplace has witnessed a noticeable increase in conflicts in recent years. This phenomenon has not only strained relationships among employees, but has also incurred significant financial costs for organisations.

This article delves into the reasons behind this surge, examines its economic implications, and offers proactive strategies for employers to effectively mitigate and resolve these issues.

Understanding the increase

There are several factors contribute to the rise in workplace conflict, including:

  • Diversity and inclusion – whilst diversity is an asset, hiring employees with varying backgrounds, values and beliefs can also lead to misunderstandings and conflict if not managed effectively.
  • Remote work – the proliferation of remote working, accelerated by the COVID-19 pandemic, has altered the dynamics of workplace interactions. Isolation, miscommunication and blurred boundaries have increased the likelihood of conflict.
  • Stress and burnout – employees face heightened levels of stress, exacerbated by uncertain economic conditions, which can manifest as conflict when people feel overwhelmed.
  • Digital communication – the absence of face-to-face interaction can make it challenging to read emotions accurately. Overreliance on digital communication channels can lead to misinterpretation, miscommunication and, ultimately, conflict.

The financial costs

The increase in workplace conflict carries significant financial implications for organisations. According to a study by the Chartered Institute of Personnel and Development (CIPD), workplace conflicts cost UK employers an estimated £28.5 billion per year in absence, decreased productivity and legal fees. This substantial figure highlights the urgency for employers to address these issues proactively.

Mitigating workplace conflict

There are many ways that these costs and strained relationships can be avoided by following good HR practice, embedding a positive culture, and tackling potential issues early on. For example:

  • promote and invest in diversity and inclusion training and awareness programmes for employees. Encourage open dialogue, empathy and respect for different perspectives.
  • enhance communication skills, focusing on clarity and active listening. Encourage employees to express themselves effectively, model what is expected throughout the business, and provide employees with the tools they need to do this well.
  • implement mental health programmes, support and resources to help employees manage stress and build resilience.
  • promote work-life balance, by encouraging staff to establish clear boundaries between work and personal life, even in a remote-working environment. This should include revisiting flexible working arrangements and being more open to trialling new working patterns.
  • consider developing a conflict resolution training programme, to include mediation and negotiation training. Equip line managers with the skills to intervene early and effectively, or consider outsourcing to third party experts if a situation warrants this, before it becomes toxic or it affects a wider cohort.
  • encourage regular one-to-one check-ins between employees and managers, to provide a platform for discussing concerns, clarifying expectations, and fostering a positive working relationship.
  • create a comprehensive Conflict Resolution Policy to outline the steps to be taken when conflicts arise. Ensure employees are aware of the policy and know how to access support.
  • use technology wisely. Organisations should of course continue to leverage technology for efficient communication, but you should encourage in-person meetings whenever sensitive topics need to be discussed (or video meetings if absolutely necessary). Ensure all employees are proficient in digital communication tools.

The increase in workplace conflict is a real and pressing issue for employers to address, with substantive financial implications for organisations to bear. However, by understanding the underlying causes, investing in training and support, and implementing proactive conflict resolution strategies, businesses can mitigate these issues effectively. A harmonious workplace not only reduces costs, but also fosters a more engaged and productive workforce, ultimately benefiting both employees and the organisation as a whole.

If you would like more help with any of these issues or any other HR concerns, please contact Jo Bradbury in our team, on 07570 372118.

Supporting Employees on Complex Fertility Journeys

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We take a look at recent developments and guidance that has emerged to support employers navigating this important topic.

We previously published an article about the Workplace Fertility Pledge, an entirely voluntary scheme that employers could sign up to in which they pledged to offer support to individuals and couples going through fertility treatment.

Now the CIPD, the professional body for HR and people development, has launched a guide to employers on how to offer workplace support.

The guidance draws together the work of others, such as Manchester Metropolitan University and Fertility Matters at Work.

What Support Can Employers Put in Place?

Fertility treatment varies and so do the needs and wishes of those going through it, but for those looking at what they can do in their organisation, it’s a useful starting point to review Manchester Metropolitan University’s list of various factors that those undergoing fertility treatment may be dealing with:

  • attending multiple (sometimes daily) clinic appointments – often arranged with little notice
  • finding the time and privacy to take sensitive phone calls from the clinic during the working day, coupled with the anxiety of waiting for, and potentially missing, important updates
  • storing medication (which may require refrigeration) at work and finding a clean and private place to inject medication
  • ‘cycles of hope and grief’- the challenge of receiving difficult news at work and managing the significant emotional transition if treatment is unsuccessful
  • potential strain on relationships both inside and outside work
  • financial pressures if funding treatment privately

As an employer, this list is really pause for thought. Supporting employees through this journey makes good sense, not only because it’s the right thing to do from a human, compassionate perspective but also because you can work with that employee to help them to continue to be effective in their role in a planned way, rather than them staying silent and trying to muddle through.

There’s lots an organisation can do, from educating managers and employees, introducing a policy and allowing flexibility for those undergoing treatment.

Resources

The CIPD has helpfully included their Fertility Journey Policy, which is worth a read for those thinking of implementing their own policy.

Fertility Matters at Work is also a great resource for employers who are searching for information on how they better equip their organisation to support employees who are on a complex fertility journey.

For further information on this topic, please contact Sarah Martin in our team on 07799 136091.